Topeka Capital cuts Apple price target to $888 from $1,111

Brian White, Topeka Capital Markets analyst, has reiterated “a Buy rating and cuts his price target to $888 from $1,111,” Tiernan Ray reports for Barron’s.

In a note to clients, White wrote:

The stock is trading at less than 6x (ex-cash) our CY14 EPS estimate and we believe there is quite a bit of bad news priced into the stock at current levels, while estimate resets lower the bar for the future. At the same time, we believe the profit and sales cycle will reach the bottom in 2QFY13… For 2QFY13, Apple expects revenue of $41 billion to $43 billion (Street is at $45.38 billion) and inline with our $41.9 billion projection. Given our expectation of a shorter launch cycle for the iPhone and iPad, we recently adjusted the seasonality in our model and particularly for the March quarter, which jibes with the outlook that Apple provided last night. As such, we are maintaining our 2QFY13 revenue estimate at $41.9 billion, while adjusting our EPS projection to $10.00 from $10.37 (Street is at $11.67). For FY13, we are slightly increasing our revenue estimate to $192.1 billion from $191.9 billion, while trimming our EPS projection to $47.73 from $49.04.

Tons more AAPL analysts’ price target and rating changes in the full article here.

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Apple’s results aren’t the total disaster implied by the market meltdown – January 24, 2013
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Apple CEO Tim Cook: ‘No technology company has ever reported these kinds of results’ – January 24, 2013
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  1. I love that Apple gives a range that they think they will fall into and Wall Street has a higher estimate – Really!!! that is why there is a range.. They want be higher than the top end..Urgh!!

    1. “Apple expects revenue of $41 billion to $43 billion (Street is at $45.38 billion) …”

      Coming Spring 2013: Apple Bloodbath 2. The Street already higher by up to 4.38 billion. How easy it is to tear down one of the greatest companies of all time. The media is cheering and the street sneering.

      It seems Apple can’t win if this keeps up.

      Not! We shall prevail.

  2. didn’t they look at the situation nowadays? Apple will never be reach to $600 even. it’s very pessimistic. I think that it will probably drop more until it will find right price. so far stock price has been bubble. don’t be panic yet. it will drop even more.

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